Jefferies has maintained its ‘buy’ rating on Apollo Hospitals stock with a target price of ₹7,900, citing confidence in the sustainability of 5-7% ARPOB (Average Revenue Per Occupied Bed) growth despite new bed additions. The brokerage noted that concerns about ARPOB are unwarranted, as bed additions for organized players are around 2% of their existing capacity and will be phased over 3-5 years.
Jefferies emphasized that Apollo Hospitals maintained an 8.3% ARPOB CAGR over FY11-20 despite multiple headwinds, showcasing its resilience and effective growth strategy. The brokerage remains optimistic about the company’s expansion plans and long-term growth trajectory.
Apollo Hospitals share price performance:
On February 27, Apollo Hospitals’ share price closed at ₹6,170.00, down by ₹81.35 or 1.30%. The decline reflects investor caution, despite Jefferies’ positive outlook on the company’s ARPOB growth potential and strategic expansion.
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